JSW Energy Successfully Raises Rs. 5,000 Crore Equity through QIP

JSW Energy Ltd (or "the Company") has successfully completed its Rs. 5,000 crore Qualified Institutions Placement (or "QIP"). The issue garnered a very strong interest from marquee global long-only investors, domestic mutual funds and insurance companies, reflecting their confidence in India's power sector outlook and the Company's unique and distinctive positioning as a leading player in the Indian power sector.

This marks the first-ever equity raise by the Company since its listing in 2010. This is the largest primary equity raise in the Indian power sector in the last decade, and among the top three largest primary equity raise in the history of the Indian power sector.

The QIP witnessed an overwhelming response resulting in over 3.2 times subscription. Few of the largest global asset managers like GQG, Blackrock, Nomura, Wellington, UBS and Abu Dhabi Investment Authority (ADIA) participated in the QIP, entrusting their confidence in the long term growth prospects of the Company.

Sharad Mahendra, Joint Managing Director and CEO of JSW Energy, said: "India's strong investment cycle driven economic growth momentum bodes well for power demand outlook. The strong institutional investor interest reflects their unwavering confidence in our positioning as a diversified energy transition platform focused on growing both the generation and storage businesses, with optionality for green hydrogen and its derivatives. At JSW Energy, we are not just witnessing the transformation of the energy sector; we are actively shaping it, setting new benchmarks for industry leadership, and aiding India's journey towards net zero targets by 2070."

Pritesh Vinay, Director (Finance) and CFO of JSW Energy, said: "The overwhelming response from high-quality institutional investors to the successful raise of Rs. 5,000 Crore growth capital is humbling indeed. It validates JSW Energy's positioning of having bestin-class disciplined capital allocation track record, proven execution capability to build large scale projects at competitive costs, operational excellence, and a strong pipeline of returns-accretive growth projects. The proceeds from the QIP will bolster an already strong capital structure even further, significantly enhance our financial flexibility, and enable us to accelerate our ambitious growth plans."

Jefferies India Private Limited were the sole Book Running Lead Manager, Khaitan & Co. was the Legal Counsel to the Company while Shardul Amarchand Mangaldas & Co. and Linklaters Singapore Pte. Ltd. were the Legal Counsels to the Book Running Lead Manager.

JSW Energy has total locked-in generation capacity of 12.5 GW comprising of 7.2 GW operational, 2.6 GW under-construction assets across wind, thermal and hydro and LoA/LoIs for 2.7 GW capacity from SECI (Solar Tranche XIII and Wind Tranche XVI), SJVN and GUVNL. In addition, the company has 3.4 GWh of locked-in energy storage capacity through battery energy storage system and hydro pumped storage project. The Company aims to reach 20 GW generation capacity and 40 GWh of energy storage capacity before 2030. JSW Energy has set an ambitious target of achieving Carbon Neutrality by 2050.

Shares of JSW Energy Limited was last trading in BSE at Rs. 598.90 as compared to the previous close of Rs. 582.90. The total number of shares traded during the day was 177967 in over 4206 trades.

The stock hit an intraday high of Rs. 600.50 and intraday low of 583.00. The net turnover during the day was Rs. 105434821.00.

Source : Equity Bulls

Keywords

JSWEnergy INE121E01018 FundRaising QIP